NBC agrees to purchase Oxygen for $925 million

The broadcaster, a unit of General Electric Co., will promote Oxygen on the Bravo channel, the Today show and the iVillage Web site it bought last year for $600 million. More than 40 percent of Oxygen's viewers are women between 18 and 49, helping NBC target a demographic coveted by advertisers.

"Oxygen is a good fit with the portfolio of cable networks," said Richard Tortoriello, a Standard & Poor's analyst in New York. He rates GE shares "strong buy" and doesn't own any. "They could sell Oxygen in the international market where it probably doesn't have a subscriber base right now."

The purchase will add to profit after the first full year under NBC, the broadcaster said Tuesday. It will pay for Oxygen through the sale of two independent Telemundo TV stations in Los Angeles and Puerto Rico.

Available in more than 74 million homes, Oxygen will help save about $35 million next year, NBC said.

Bringing Oxygen together with Bravo, the Today show and iVillage will help NBC create "a virtual women's network" that gives advertisers an audience of young, affluent women, NBC Chief Executive Officer Jeffrey Zucker said on a conference call.

NBC is also expanding its digital operations with Hulu, a Web-based joint venture with News Corp. offering films and shows that will start later this year.

Oxygen Chief Executive Officer Geraldine Laybourne founded the network in 2000 with daytime talk show host Winfrey and producers Marcy Carsey, Tom Werner and Caryn Mandabach. Microsoft Corp. co-founder Paul Allen is also an investor, according to Oxygen.